New York, Dec. 14, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Rare Earth Elements Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06190190/?utm_source=GNW
The consumer electronics industry is one of the industries affected negatively due to the COVID-19 impact. However, there was a huge demand for consumer electronics due to the need for communication because of the lockdown and social distancing. Shut down of manufacturing plants and intermittent closure of physical stores in most parts of the world have created disturbances in the supply of consumer electronics. The aforementioned reasons negatively affected the rare earth magnets market.
Key Highlights
In the medium term, the major factors driving the growth of the market studied are the high demand from emerging economies, the dependency of ’Green Technology’ on rare earth elements, and companies focusing on R&D.
On the flip side, the inconsistent supply and impact of COVID-19 are some concerns affecting the growth of the studied market.
The increasing scandium usage in aerospace applications is likely to provide opportunities for the studied market during the forecast period.
Asia-Pacific dominated the global market, owing to the increasing production of rare earth metals?and rising demand from industries, such as consumer electronics, etc.
Key Market Trends
Increasing Demand for Magnets
Magnets stand?to be one of the largest applications for rare earth elements. Magnets find extensive applications in various industries, such as electronics, automotive, power generation, medical, etc.
Magnets are used in computer hard drives, microwave power tubes, anti-lock brakes, automotive parts, disk drive motors, frictionless bearings, power generation, magnetic refrigeration, microphones and?speakers, communication systems, and MRI.
Industries, such as automotive, electronics, and healthcare, have been witnessing innovation and?development, driving the demand for magnets in such industries.
According to Statista Market Forecast, the consumer electronics industry stood at USD 384 billion in 2020. The market is expected to reach around USD 415 billion in 2021 and is forecasted to reach USD 487 billion in 2025.
Additionally, magnets are used in medical equipment, such as MRI machines, pacemakers, sleep apnea machines, and insulin pumps. The healthcare industry has been witnessing huge investments in the regions such as Asia-Pacific and Middle East & Africa.
The United States is the largest medical device market in the world. By 2023, the industry is expected to reach USD 208 Billion. By 2030, the US medical devices market is projected to cross over USD 300 billion, while China is likely to grow at the fastest pace and likely to account for more than 25% (over USD 200 billion) of the global medical device market.
Hence, all such trends are expected to noticeably drive the demand for magnets, which is further projected to increase the demand for rare earth elements in the coming years.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. With increasing investments in the healthcare industry and the rising ceramic demand and production, the consumption of rare earth elements is projected to increase noticeably in the region.
According to OICA, the total number of motor vehicles produced in 2019 in China and India are 25.75 million units and 4.52 million units, respectively. However, in 2020, this value in production declined by around 2%. This decline in production was majorly due to the impact of the COVID-19 pandemic. However, in the first half of 2021, the production of vehicles in the country reached 12,569,475 units, registering a growth rate of 24%, compared to 10,116,915 units, over the same period in 2020.
In addition, India is witnessing investments in the automotive industry. For instance, Hyundai Motor India invested USD 500 million during FY2020.
At present, most of the world’s supply of these high-value rare earth elements originates from China, making the global rare earth elements market supply sensitive to changes in China’s manufacturing sector. In 2020, 58% of global rare earth elements production came from China, the report said, citing data from the U.S. Geological Survey.
China has the world’s largest electronics production base. The country serves not only domestic demand for electronics but also exports electronic output to other countries. With an increase in the disposable income of the middle-class population in the country and increasing demand for electronic products in the countries importing electronic products from China, the production of electronics is projected to grow.
China has the largest consumer electronics market in the world, with a valuation of around USD 152.7 billion in 2020. The country is projected to cross a valuation of USD 162 billion in 2021, and the segment is forecasted to reach 175 billion by 2025.
Furthermore, the demand for and production of ceramics is the highest in Asia-Pacific. The increasing ceramic demand from industries, such as aerospace and?defense, energy, healthcare, and consumer goods, is driving the production of ceramics in the region.
Hence, such market trends are likely to significantly impact on the rare earth elements market in the coming years.
Competitive Landscape
The rare earth elements market is fragmented in nature, with numerous players holding insignificant shares to affect the market dynamics individually. Some of the prominent players in the market include Lynas Rare Earths, Ltd., Aluminum Corp of China, Iluka Resources Limited, and Rare Element Resources Ltd. among others.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06190190/?utm_source=GNW
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